Services · Refinancing

Switch when it pays.
Stay when it doesn't.

A refinance is worth doing when the saving beats the switching costs within a year or two, or when the loan's structure no longer suits what you are doing next. After four cash-rate rises in 2026, plenty of loans are worth a look and plenty are not. We review yours against the whole market for free, show the arithmetic in writing, and tell you plainly if the right move is to stay and renegotiate.

Get my free rate review →Refinance feasibility calculator

Refinancing in October 2026.

The numbers that decide whether a switch pays: the rate environment, the test lenders apply, and what it costs to move.

4.60%RBA cash rate since 30 September 2026, after rises in February, March, May and SeptemberRBA

6.75%Average owner-occupier variable rate across the market in mid-October 2026; the sharpest loans sit under 6 per centCanstar via MPA, 13 Oct 2026

3ptsAPRA buffer added to the rate when a lender tests a refinance; some lenders apply a lower buffer to a clean, like-for-like switchAPRA, May 2026

$150–400Typical outgoing lender discharge fee; deferred-establishment exit fees were banned on loans written after 1 July 2011Moneysmart

≈$130×2Victorian government fees to discharge one mortgage and register the next, indexed every JulyLand Use Victoria

$2k–4kRefinance cashbacks still offered by some smaller lenders in 2026 (IMB, BankVic, Greater, Tiimely and others); none of the big fourIndustry survey, 30 Sep 2026

Figures checked October 2026 against the sources shown. Rules change; we re-check before every application.

Is it worth refinancing my home loan right now?

If your variable rate starts with a 7, almost certainly. If it starts with a 6, it depends on the balance, the loan term left, and what a switch costs. The test we use: the first-year saving, after every fee, should cover the costs of moving with room to spare, or the new loan should fix a structural problem the old one cannot.

On a $650,000 loan, half a percentage point is about $3,250 a year. Switching typically costs $600 to $1,500 all in (discharge, government fees, a new application or valuation fee, sometimes a package fee), so the arithmetic clears easily at that gap and fails at a tenth of a point. Rates are moving month to month in this cycle, so we compare your loan against what your own lender offers new customers today, not against an advertised rate from last quarter.

What does it cost to refinance?

Usually $600 to $1,500 in fees: an outgoing discharge fee of around $150 to $400, two Victorian government fees of roughly $130 each, and whatever the new lender charges to set up, which can be nothing. Victoria has no mortgage duty. The one cost that can be large is a break fee on a fixed rate, and that only bites when rates have fallen since you fixed.

After the 2026 rate rises, most loans fixed in 2024 or 2025 should carry little or no break cost, but the figure has to come from your lender in writing, and we ask for it before anything else. Lenders mortgage insurance is the other trap: if your loan is over 80 per cent of the current value, a new lender will charge LMI again, and that usually kills the case for switching until the value or the balance moves.

Can I refinance if I am struggling to pass the serviceability test?

Possibly. APRA requires lenders to test you at the loan rate plus 3 percentage points, but a number of lenders assess a clean, dollar-for-dollar refinance at a lower buffer, commonly around 1 point, provided the loan-to-value is 80 per cent or less, repayments are up to date and you are not borrowing extra. Which lenders do that changes, so we check at the time rather than promising a name.

If even that fails, the better conversation is often with your existing lender: a retention discount costs you nothing to ask for, and we ask on your behalf with the competing offers in hand.

Should I fix my rate?

Only if certainty is worth more to you than flexibility. In October 2026 the cheapest fixed rates sit above 6 per cent, roughly in line with sharp variables, which means you would be paying for certainty rather than for a discount. Splitting part fixed and part variable is a common middle path.

Fixed loans usually cap extra repayments, limit or remove offset, and charge break costs if you sell or refinance early. If there is any chance you move, upgrade or restructure in the fixed term, we lean variable or split.

Can I pull equity out when I refinance?

Yes, up to 80 per cent of the current value without LMI, and higher with it. Lenders ask what the money is for; a deposit on an investment property, a renovation or debt consolidation are all fine, and the loan can be split so the investment portion stays separately traceable for tax.

Consolidating credit cards and car loans into a 30-year mortgage lowers the monthly figure but can cost far more in total interest unless you keep repayments at the old level. We model it both ways so you decide with the real numbers.

“The banks would have you believe that there is a one-size-fits-all approach to lending.”

Suvidh Arora, 2022

How a refinance runs.

The Cinch five steps, with the break-cost and retention conversations had before you commit to moving.

Review

Your loan against the whole panel and against your own lender's new-customer rate. Break costs requested in writing.

Negotiate or switch

If your lender matches, you stay and save without a single form. If not, we lodge with the winner.

Settle

Discharge authority chased, new loan settled, offset and redraw set up the way you want. Usually two to six weeks.

Refinancing questions.

Straight answers. If yours isn't here, ask cinchi (bottom right) or book a chat.

01How often should I review my home loan?+

Once a year, and whenever your circumstances change. Every Cinch loan gets an annual review because the loan that suited you at settlement rarely suits you three years later.

02Will refinancing hurt my credit score?+

A single application creates one enquiry on your file, which is minor. Several applications in a short period look worse, which is one reason to compare first and apply once.

03Can I refinance an investment loan?+

Yes, and the same arithmetic applies, with investor rates a little higher. Keep the investment loan separate from your home loan so the interest stays clearly deductible.

04Do you charge for a rate review?+

No. We are paid by the lender if you switch and nothing if you stay. The written comparison is free either way.

05How long does a refinance take?+

Two to six weeks from application to settlement. The slowest step is usually your current lender releasing the discharge, which they are allowed to take up to about ten business days over.

06What if my property has fallen in value?+

If the loan is now over 80 per cent of value, a new lender will want LMI, which usually outweighs any rate saving. In that case we negotiate with your existing lender instead and revisit the switch when the balance or the value has moved.

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Reviewed, switched or kept, on the numbers. A cinch.